The price of the largest cryptocurrency by market cap, Bitcoin (BTC), has dropped below $20K for the first time since 2020 as the selloff in the cryptocurrency market deepens.
At one point on Saturday, BTC’s price had dropped to as low as $17,593, which is around a 13% plunge in price, according to crypto market tracker CoinMarketCap. The price of BTC then pulled back up to $18,556. However, this is still a 9.22% drop in price. As a result, Bitcoin has now lost more than 70% of its value since peaking at $68,000 in 2021.
Price of BTC breaches $20K Source: Bitstamp
Looking at the weekly chart for BTC/USD, the price of BTC has recently breached the $20k level, which has seen the crypto selloff continue. The last time the market witnessed a similar price movement on the weekly chart was between July 2019 and March 2020, as indicated on the chart.
If the previous occurrence of this type of price movement on the daily chart is any indication of what will happen next following the latest occurrence, then investors may have a lot to look forward to.
Following the previous pull down of this magnitude in BTC’s price was a 7-month rally in BTC’s price. In this period, BTC set new all-time highs and had massive deleveraging across the board, as its price climbed from around $4.5K to its peak of $68,000 during this period.
Even though the current crypto market landscape is looking horrendous at the moment, there may be a lot to look forward to from the current price levels onwards. The best strategy may just be to wait this bear market out.
Disclaimer: The views and opinions expressed in this article are solely the author’s and do not necessarily reflect the views of CQ. No information in this article should be interpreted as investment advice. CQ encourages all users to do their own research before investing in cryptocurrencies.
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Source: Cryptocurrency - investing.com
